When discussing the 3 most popular investment choices, first we talked about mutual funds and then ETFs. Now we begin consideration of equities, the 3rd major and most popular choice of superior investors. Purchasing equities in the public markets provides more people with the opportunity to grow their wealth, financial security and retirement independence than any other investing opportunity.
Equities the 3rd Big Investing Choice, Part 8 of the White Top View Series, Investment Choice a discussing the basic choices for investing. Links to all parts of the White Top View Series, Investment Choice are at the end of this post.
Equities the 3rd Big Investment Choice
Equities or the universe of stocks listed on public stock markets underlie both mutual fund and ETF investments. As holdings of stocks make up the bulk of the assets in almost all the investment portfolios assembled by both.
For a retail investor stock markets offer the greatest upside possibility of all publicly traded choices. By directly purchasing shares, or the stock of individually listed companies, investors expose themselves to a vast range of excellent upside possibilities. Investors have over 60,000 choices when selecting how they want to invest in equity markets!
Know costs and risks to make investing profitable
To get started most people need some help to develop the knowledge and understanding how to invest well. Critically, most new investors need help keeping costs low and avoiding and manage risks.
With low costs and the ability to recognize, avoid and manage risk, we can learn how to safely place ourselves in favorable situations with the best upside prospects. With a little effort anyone that knows grade five math can learn how to invest well.
Individuals that regularly invest modest amounts of money can definitely grow their wealth over time. The essential keys to achieving such success are regular participation in the market and secondly, participation over a long time. The sooner you start the better off you will be. The very best time to start is now!
Investing is a very long game
This is a long game. And to play well you should think of it as continuing until you are 90! Ninety because in only a few years that will be the average expected lifespan! So half of us will be going even longer!
That means you need to make your wealth plan span 90 years! You had best get started!
Investing regularly over a long time can develop even a modest investment program into a financial engine that delivers an exponentially larger fortune. Do that faithfully can build you financial security and retirement freedom.
Knowing what to do and how to do it makes investing easy, interesting and safe. Accomplishing that is exactly what we intend to help you do.
In each White Top View blog post we present a bite-sized discussion of some aspect of investing. Over time we will cover a great many aspects of investing. Your questions and comments are welcome here.
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Your comments and questions are welcome here. Or email me at WhiteTop@WhiteTopInvestor.com. Bite-sized White Top View posts are lessons to help non-investors on the way to becoming knowledgeable, comfortable, confident investors. By demystifying investing and giving you a better understanding of markets, one small step at a time, you can become the master of your financial security and independence. The White Top Views email list will never be shared or sold.
Have a prosperous day!
These discussions and information intend to help you better understand markets and investing. I am not a financial or investment advisor; opinions are for informational and educational purposes only and are not intended as investment advice. For syndication of the site or blog, please contact info@WhiteTopInvestor.com.
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Links to the White Top View Series, Investment Choice